Wednesday, March 12, 2014

Taxation of the Clawback in a Ponzi Scheme - How to Obtain Maximum Tax Recovery

Tax Attorney, Richard S. Lehman has just finished a new video on how to obtain the maximum tax recovery from a clawback in a ponzi scheme.

It is important that the taxpayer learn about what is called the “mitigation section”.

This is internal revenue code section 1341 that permits one type of the clawback payment to be taken as an ordinary income deduction in the year in which the clawback income was originally taxed even if the year is closed by the statute of limitations; while another type of clawback payment may be deductible only in the year of payment.

The taxpayer needs to know how to deal with "tax losses" from the clawback payment and how those losses can best be used, either to receive a refund from taxes paid in the past; or a "carry forward" of those losses to offset future income.

Richard S. Lehman, with a Masters in Tax Law from New York University Law School, with four years of U.S. Tax Court and Internal Revenue Service experience in Washington D.C.

With over 35 years as a tax lawyer in Florida he has built a boutique tax law firm with a national reputation for being able to handle the toughest tax cases, structure the most sophisticated income tax and estate tax plans, and defend clients before the Internal Revenue Service.

The firm regularly works with law firms, accountants, businesses and individuals struggling to find their way through the complexities of the tax law. In short, the firm is a valuable resource to each of these audiences.